PropTraderz

1 TICK TEST/FAIL This is a condition where the market tests the prior day’s high or low or the current IB high or low by 1 tick before finding the opposing force pushing it the other way. This is generally considered a failed test of a significant area. ABSORPTION Price Absorption occurs when aggressive market participants Hit the Bid or Lift the Offer on high volume, and are met with participants who “absorb” all of the orders. The effect of this price Absorption is that price moves very little or not at all. Price Absorption can often lead to short-term reversals when the original aggressive participants give up and close their positions. See Absorption Reversal. ABSORPTION REVERSAL An Absorption Reversal Long occurs where aggressive sellers…